Dubai Aerospace Enterprise (DAE) has received a cash insurance settlement with proceeds totalling approximately $118 million in respect of aircraft previously on lease to Aeroflot. This represents a settlement of DAE’s insurance claims relating to seven aircraft and associated engines previously on lease to the Russian carrier.
The insurance agreement, settled with Russian insurance company Insurance Company NSK, was carried out in full compliance with all applicable sanctions regimes, notes DAE. Upon receipt of the insurance settlement proceeds, each DAE affiliated entity involved in the leases has released its claims against NSK, Aeroflot and their international reinsurers with respect to the seven aircraft and their engines.
DAE continues to engage with claims involving several other Russian airlines, noting that ‘it is uncertain whether any of these discussions will result in any insurance settlement or receipt of insurance settlement proceeds’. It is also unclear whether the necessary approvals and funding to complete any such outstanding insurance settlements can be obtained. However, DAE intends to ‘continue to actively pursue its litigation in the English courts under its own insurance policies’ and continue to attempt to mitigate its losses in respect to aircraft previously leased to these airlines.
